10-15-2003 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission October 15, 2003 6.2 Review Electric & Water Rate Survey Bryan Adams presented, and explained water rate comparisons with other communities, that was done in 2002. Discussion of the water rates showed our rates are average, and the target of the increase is in the second tier, to encourage conservation. The effect of the increase in wholesale rates from Great River Energy was reviewed. The electric residential and commercial retail rates are competitive, but the electric demand rate is not competitive, and perhaps needs relief Reasons for Exel Energy not changing their rates in 2004 were discussed. Bryan Adams reviewed the proposed rate increases for Elk River Municipal Utilities. John Dietz voiced his concerns with the demand rate. Discussion of lowering the demand rate, and subsidizing with bonding was discussed. Conclusions drawn were, that growth is driving the increase necessary for increased rates, and that wholesale rates cannot be controlled. 6.3 Review Purchase of Skid Steer The 2003 budget contains an item to replace the existing bobcat/skid steer, which is used to load, and unload trucks, as well as snow removal. The proposed 2004 budget contains an item to purchase another forklift/front end loader to safely carry heavier loads than the bobcat can handle. Staff is recommending, purchase of a 3000#+ capacity skid steer to be used for the everyday material handling, and a 10,000#+ capacity front end loader for the heavier items. Staff is seeking authorization to purchase the new 3000#+ capacity skid steer with bucket and forks, at this time. In 2004 Staff will ask for authorization to purchase a used 10,000#capacity front end loader with bucket and forks, and trade in the existing bobcat. Jerry Takle moved to authorize the purchase up to $35,000.00 for a 3000#+ capacity skid steer with bucket, and forks. James Tralle seconded the motion. Motion carried 3-0. 6.4 Review& Consider Water Service Line Insurance Bryan Adams reviewed the present policy of ownership of water services, and the possibility of adding an insurance program to cover the costs of repairs to customer services. The Utility receives one or two calls per month from customers experiencing leaks of the valve inside the house before the meter. It is necessary for the water service person to disconnect the water, and after the homeowner has the leak repaired by a plumber, return to reconnect the service. Very often it is more efficient for the serviceman to replace the valve, and have the customer replace the valve to our stock. Discussion continued regarding the responsibilities, and the proposal to add a$1.00 line item per month to the customer water bills. A survey was proposed to see how customers would react to the insurance. Further discussion between Staff, and Commission reached no conclusion, other than to continue as usual, and replace leaking valves inside the house before the meter.